Reporting contributions on sporting testimonial payments

HMRC has published draft regulations setting out the requirements for reporting and paying class 1A employer National Insurance contributions on the taxable element of termination awards and sporting testimonial payments, with effect from 6 April 2020. 

The regulations will enable HMRC to collect and report in real time National Insurance due on termination awards above £30,000 and on payments arising from non-contractual and non-customary sporting testimonials above £100,000 created in the National Insurance Contributions (Termination Award and Sporting Testimonials) Act 2019.

Comments should be emailed to consultation.nic@hmrc.gov.uk by 16 January 2020.